U.S. Sanctions Target China's Teapot Refineries Amid Iran Trade Dispute
The U.S. administration has imposed sanctions on China's Hengli Petrochemical Refinery for purchasing Iranian oil amid ongoing peace talks with Tehran. Sanctions affect multiple shipping companies linked to the Iranian oil trade and complicate operations for teapot refineries, which account for a significant share of China's refinery capacity.
The Trump administration on Friday announced sanctions against China's Hengli Petrochemical (Dalian) Refinery for its purchase of Iranian oil. This move coincides with upcoming peace talks between Washington and Tehran.
The U.S. Treasury's Office of Foreign Assets Control targeted Hengli Petrochemical for its substantial import of Iranian crude oil, impacting around 40 shipping companies involved with Iran's shadow fleet. In response, China's Washington embassy opposed the sanctions as unilateral and illegal, advocating for unimpeded trade.
Sanctions have previously affected similar Chinese refiners, complicating their operations due to restricted crude oil supply and sales under false names. Despite sanctions, China continues to acquire most of Iran's oil, accruing over 80% of the nation's exports.
(With inputs from agencies.)
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